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NGEx Resources Inc.: Final Drill Holes of the Season Confirm Major Copper-Gold Discovery at Los Helados, Chile

Jun 16, 2011 - 09:10 ET
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VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 16, 2011) -NGEx Resources Inc. (TSX:NGQ) ("NGEx" or the "Company") is pleased to announce further positive results from the final three diamond drill holes completed during this season's highly successful program at the Los Helados project located in Chile's Region 3. The results reported today are from holes LH-22 to LH-24. Highlights include: LH-24 with 728 meters of 0.55% copper and 0.24 grams/tonne gold including 146 meters of 0.66% copper and 0.17 grams/tonne gold; LH 22 with 456 meters of 0.51% copper and 0.19 grams/tonne gold, including 112 meters of 0.63% copper and 0.3 grams/tonne gold; LH-23 with 216.7 meters of 0.70% copper and 0.44 grams/tonne gold. The three drill holes released today are all on the western margin of the high grade core of Los Helados and indicate that the high grade zone is still wide open to the west. LH-22 and LH-23 are notable for their significant gold intercepts as well as high copper grade. Note that LH-23 was terminated in mineralization, before its full target depth due to drilling problems.

The three holes reported today are the final holes of the recently completed drill program which totalled 9,638 meters in 13 holes. The objective of this year's drill program was to better define a zone of higher grade mineralization suggested by earlier drilling. The drill holes reported today confirm and extend the high grade zone which was also intercepted in holes reported earlier this year including; LH-12 with 711 metres of 0.54% copper and 0.26 grams/tonne gold, including 114 metres of 0.67% copper and 0.19 grams/tonne gold; and LH 16 with 701 metres of 0.67% copper and 0.30 g/t gold. This year's drilling has confirmed Los Helados as a major new copper-gold discovery.

Intervals from the holes reported today are summarized in the table below. Intervals >0.5% copper are highlighted. Note assays referenced above are rounded to two significant figures whereas assays in the table below show three significant figures.

FromToInterval
(meters)(meters)(meters)Copper %Gold g/t
LH-22
03939casing
and39122830.1030.251
and122146240.1651.429
and1462941480.2720.215
and (composite)2947504560.5070.187
including2944061120.6320.294
and including708750420.5910.158
LH-DDH-23037.537.5casing
and37.5190152.50.0950.246
and190260700.4370.818
and260476.7216.70.6980.445
LH-DDH-2403636casing
and361641280.1390.206
and (composite)1648927280.5510.240
including3464781320.6250.282
and including7468921460.6650.169
and892937.845.80.3610.098

Intervals are core lengths.

Please see attached appendix for a summary of all the results from the recently completed program.

Commenting on the results, Wojtek Wodzicki, President and CEO, said, "The results we report today continue to expand the higher grade core of the Los Helados system. We are extremely pleased with the results of this year's drill program. It achieved all our objectives and confirms Los Helados as one of the most significant new copper-gold discoveries in the world. We continue to be encouraged by both the length and grade of the intercepts and by the fact that the drill holes contain long intervals of better than 0.6% copper plus gold. Because of the gold the reported intervals look even more encouraging on a copper equivalent basis. The three drill holes reported today are all on the western margin of the current drill pattern and they demonstrate that the system continues to be well mineralized and open to the west. LH-23 is the deepest hole drilled to date and it extends mineralization to almost 900 meters depth. Previously released holes indicate that the deposit is also open to the south and east. There is also potential for additional higher grade material north of LH-12. We are beginning to plan for a major infill drill program scheduled to start in November, 2011 at the beginning of the South American spring. This program will include drills with the capability to drill to more than 1 kilometre depth in order to test for the potential high grade core of the system. We are very encouraged by the results to date and are confident that we are working on a major new copper-gold discovery."

The higher grade mineralization reported above is hosted within a quartz-feldspar porphyry stock and cross-cutting magmatic-hydrothermal breccia body that, based on mapping and drilling to date, has an estimated area of approximately 600 metres by approximately 500 metres and extends to depths of more than 900 metres. The higher grade zone remains open in several directions and further drilling is required to confirm these dimensions and to define the limits of the mineralization laterally and at depth. Please see attached map, http://media3.marketwire.com/docs/110616Map.pdf.

The higher grade mineralization at Los Helados is associated with potassic alteration which is represented by strong biotite alteration. Copper mineralization occurs primarily as chalcopyrite in both veinlets and breccia matrix. There is a close association of chalcopyrite with magnetite. In the upper parts of some drill holes, the potassic alteration is overprinted by a chlorite-sericite assemblage. Interpretation of the drill results is an ongoing process and will be updated as additional data become available.

Los Helados is one of several large porphyry copper-gold systems including the Company's Josemaria and Filo del Sol projects all located within the large block of contiguous claims that the company controls in Region 3 Chile and adjacent San Juan Province, Argentina. Josemaria, located approximately 20 kilometres from Los Helados, has a previously released NI 43-101 compliant inferred resource of 460 million tonnes of 0.4% copper and 0.3 g/t gold. Nearby deposits held by other companies include Caserones-Regalito (Pan Pacific Copper-Mitsui) and El Morro (Goldcorp/New Gold). The Company holds a 60% interest in the Los Helados project. Japan, Oil, Gas, and Metals National Corporation ("JOGMEC") holds the remaining 40% interest in the project. Both parties contribute their pro-rata share of exploration expenditures.

Sample Preparation and Analysis and Qualified Person

The drill core was logged, sawed, and half cores were sampled in their entirety in two metre intervals or intervals corresponding to geologic breaks by Company personnel at the Company's field office in Copiapo, Chile. Samples were shipped ACME's Copiapo sample preparation facility for crushing and grinding. The sample pulps were analyzed by standard industry assay methods- in ACME's Santiago, Chile Laboratories. Copper and gold standards as well as blanks and duplicates (field, preparation and analysis) were randomly inserted into the sampling sequence for Quality Control. On average, 9% of the submitted samples correspond to Quality Control samples. The Quality Control/Quality Assurance (QA/QC) program on the Los Helados Project is under the management of Diego Charchaflie MSc., P.Geo (BC), a qualified person pursuant to NI 43-101. Dr. Wojtek Wodzicki Ph.D, P.Geo (BC), a Qualified Person as defined by National Instrument 43-101 and President and CEO of NGEX has reviewed and verified the technical exploration information contained herein.

On behalf of the Board,

Dr. Wojtek Wodzicki, President and CEO

APPENDIX

Summary of Los Helados Drill Results From 2010/2011 Field Season

HoleFromToLengthCu (%)Au (g/t)
LH-12
Total hole407517110.540.26
incl.172236640.590.46
& incl.306332260.680.30
& incl.348392440.790.31
& incl.5166301140.670.19
& incl.636720840.690.19
LH-13
Upper section181801620.200.18
Lower section180742.3562.30.540.25
incl.4346462120.680.30
& incl.658710520.820.26
LH-14
Total hole607156550.260.09
incl.536582460.420.10
& incl.588622340.410.11
& incl.658704460.560.18
or incl.694704100.830.22
HoleFromToLengthCu (%)Au (ppm)
LH-DDH-15
03030casing
and307116810.2560.105
including104138340.2670.162
and including138152140.0210.511
and including352416640.3000.073
and including506604980.4350.118
and including650711610.5140.145
LH-DDH-16
03232casing
and3276440.0210.296
and767777010.6720.303
including76126500.4980.328
and including2086464380.6970.309
and including646678321.1240.559
and including678744660.6830.213
and including744777330.9390.241
LH-DDH-1703636casing
and361861500.1590.209
and1867615750.5850.334
including514540260.8600.486
and including564761.3197.30.7070.264
LH-DDH-18033casing
and331341010.0390.139
and1346024680.5520.315
including186212260.8490.478
and including424452280.7470.371
and602695.493.40.2850.078
HoleFromToLengthCu (%)Au (ppm)
LH-DDH-19013.7513.75casing
and13.75194180.250.2480.214
and1947525580.4770.192
including2984781800.5650.262
and including660752920.8760.202
LH-DDH-2002424casing
and244384140.1830.216
and4387503120.7260.346
including6427501080.8590.326
or including674702280.9920.376
LH-DDH-2101414casing
and142280.0702.167
and227507280.4710.187
including60126660.4850.282
and including1944042100.6070.234
and including4686081400.5880.178
and including74275081.0350.490
FromToInterval
(meters)(meters)(meters)Copper %Gold g/t
LH-22
03939casing
and39122830.1030.251
and122146240.1651.429
and1462941480.2720.215
and2947504560.5070.187
including2944061120.6320.294
and including708750420.5910.158
LH-DDH-23037.537.5casing
and37.5190152.50.0950.246
and190260700.4370.818
and260476.7216.70.6980.445
LH-DDH-2403636casing
and361641280.1390.206
and (compos.)1648927280.5510.240
including7468921460.6650.169
and892937.845.80.3610.098

FOR FURTHER INFORMATION PLEASE CONTACT:

NGEx Resources Inc.
Sophia Shane
Corporate Development
(604) 689-7842
(604) 689-4250 (FAX)
ngexresources@namdo.com
www.ngexresources.com



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